Global Innovation Management Assignment Sample
1. Introduction
1.1 Background of the organization
HSBC is one of the largest banks in United Kingdom that has more than 40 million customers worldwide. This financial organization offers personal banking, commercial banking, wealth banking, and global banking activity. The network of the bank covers more than 64 countries in the world including Latin America, Europe, Asia, Middle East & Africa, North America (Hsbc.com, 2020).
The main vision of the organization is to fulfil customer dreams and ambitions with their value-added service and global innovative tools. The mission of the organization is to connect the customers with opportunities and economic prosperity of the world.
Figure 1: Annual Profit of HSBC Bank
(Source: Hsbc.com, 2020)
The company has 197,000 shareholders all over the world with an annual revenue of 6.4 million pounds in the year 2018 (Hsbc.com, 2020). The company has implemented global innovation tools and techniques to improve their customer service and overgrow organizational performance. The organization has used the digital banking platform for enhancing customer relationship management for its growing business.
1.2 Concept of global innovation management
Global innovation management is the concept of invoking new theories, frameworks, and models in the existing business for modifying the tools and techniques that will help to sustain the global business environment. According to Albors-Garrigos et al. (2018), innovation is the core part of any enterprise business, hence, the business organization has executed creative tools and techniques to sustain a competitive business environment.
The creativity has been forecasted in the business practice and business policies and this is the reason why this attracts the target customers and grows productivity of overall business. There are four keys to innovation management which are listed below:
Capabilities
Capability is termed as the organization ability and resources to mitigate innovation in the organization (Bowen and Bowen, 2016). Innovation is based on individual capability or team-wise ability to achieve the target goal of the business. Capability includes unique insight, practical skills, and proficiency of the employees in organization.
The effective structure of the organization helps to use all the capabilities in the right direction. The structure defines the organizational infrastructure, internal processes for applying the tools of creativity (Bowen and Bowen, 2016). As an example, without the right communication channel in the organization, no process can be managed to achieve better growth and productivity.
Culture
There is a need to implement effective cultural people in the organization to develop innovative management in the organization. The need for cultural traits helps to experiment with the new theories and framework for creativity (Cano-Kollmann et al. 2018). This will provide enough freedom in thinking and responsibility to the individual for bringing innovation in the business practices.
Strategy
Strategy is the most prior factor of innovation because without effective strategic thinking the business goal cannot be achieved (Bowen and Bowen, 2016). The business strategy will help to choose the best outcome from the given statements and help to enhance the performance of the organization.
1.3 Concept of different contemporary issues
Contemporary issues identify the challenges, ways of thinking in the business organization to improve organizational performance. The issues in the business organization may arise due to different strategic thinking of the people in the business organization.
As mentioned by Chen et al. (2017), different contemporary issues include ineffective communication strategy, change management, poor morale of the employees, and so on. Contemporary management includes proper planning, leading, and controlling the organizational goal to survive in the global business environment. The managers of the business organization are responsible for handling contemporary issues effectively in the organization.
2. Analysis & Findings
2.1 Analyse the Organization Behaviour
The organizational behaviour has been dependent on the two most two important factors including social entrepreneurship and open innovation. The organization HSBC bank also used the two key activities for enhancing their business growth and productivity.
Social Entrepreneurship
Social entrepreneurship is the process of implementing different cultural and values to overcome the environmental, social issues of the organization. Social entrepreneurship primarily represents the social changes, potential payoff of the business organization for enhancing the performance of the company.
There are various benefits of social entrepreneurship including stable levels of employment, creating innovative solutions, and helping the members of the society in the organization (Chen et al. 2017). Moreover, social entrepreneurship has enriched the communication strategy of individuals for better performance outcomes in the organization. The main aim of social entrepreneurship is to create money by solving the social problems of the organization.
In this study, the organization HSBC bank has maintained the rules and regulations of social entrepreneurship for enhancing their business growth. As per the enterprise report of 2018, most of the entrepreneurs of this bank are under the age of 35, which has more social impact in the organization. 11% of the total entrepreneurs are with the age above 55 who have the least social influence to the organization’s growth (Hsbc.com, 2020).
The global chief investment officer of HSBC bank Stuart Parkinson said that the young entrepreneurs have more focus on the business to achieve financial success for sustainable growth. As per the annual report of HSBC bank more than 3700 entrepreneurs have engaged to overcome the social issues in around 11 countries.
Open Innovation
Open innovation is the structured process of purposive outflow and inflow of knowledge in the organization for internal creativity and expansion of the business market. Open innovation helps to pursue the use of external knowledge from external resources to enhance organizational performance (Coccia, 2017).
The main benefit of open innovation is that it uses both the internal and external knowledge of the business organization which can help to empower the knowledge of the individual employees. With the use of open innovation tools and techniques, the business growth of the organization has been increased upto 40-60%. Open innovation provides more resources in the organization compared to close innovation.
The organization HSBC bank has spent $2.3 billion in artificial intelligence and digital innovation for improving its customer service policy (Hsbc.com, 2020). This provides a more secure and transparent service to the customers for achieving higher performance outcomes. The bank has invented the digital platform WeChat where the customers get notification about the transaction or any new products of the organization.
The platform helps the customer by notifying any fraudulent activities in their bank account. The customer need not have to worry if they change their sim card because they get all the needed notification in the WeChat portal. For such digital innovation, the users of HSBC net banking have been increased by 55% in the year 2017, and in the last five years, the mobile banking users has also been increased upto 333% (Hsbc.com, 2020).
2.2 Critically Explain the Process of Global Innovation Management
The individual process of innovative management is stated below:
Push vs pull innovation Model
The push model is designed for technology development of the organization whereas the pull model has designed to identify the market and customers of business organization. The technology push model is used by the research and development team of the organization for improving the product and services. The market pull model helps to mitigate the customers and market of the business organization of HSBC bank (DoÐan, 2016).
The main aim of this model is to focus on the challenges of the business based on innovation. The company has used the innovative business model and research development factor is a known robust dynamic model to develop the artificial intelligence of the organization.
In the pull marketing model of the organization, the company has used a customer-centric approach to attract the customers of the organization (Eke, 2018). There are several benefits of using the model including high chances of enhancing target customers and more annual profit. The main advantage of pull market model is to be cost-friendly and enhance the market resources. The company HSBC bank has used the model to sustain itself in the global trading market.
The Phase-gate process
The phase-gate process is being used by the company HSBC bank to reduce the overhead time of the individual process. This helps to analyse each phase of the process that connects the customers with the bank. The main advantage of using this process includes the consistency of ideas and makes it more generalized with the assumption of innovation (García‐Olalla and Vázquez-Ordás, 2020).
This helps to mitigate all the plans of the business by applying creative tools in the process management. The organization HSBC bank has used the innovation process to make it business flexible, proactive, and scalable (Hsbc.com, 2020). This will help to analyse the different cross-functional activities of the business for making better opportunities.
Lean Start-up Model
The lean startup model is used to focus on the customers’ demands and needs. Customers are the important stakeholder of business and hence to meet customers demand is needed for any business organization (Haleem et al. 2018). The company HSBC bank has used the model to understand the need of market and customers for the overall organisational goal. The model helps to analyse the current trends of the market and help the organization for mitigating the expectations of the customer.
2.3 Analyse the innovation tools in different areas of global business environment
The innovation tools that have been used by the business organization HSBC bank to sustain in the global business environment are listed below:
- Using Robo-advisor tools
In this year the organization HSBC bank has implemented the robo advisor technology to retain customers and enhance their product and services (Hsbc.com, 2020). This product helps the customer for cross border and domestic payment for their loan. This application also concerns the lifestyle of the customers which helps the organization to better know their target customers.
- Implementation of treasury API for business clients
This business tool helps to improve the business growth of the organization by speeding up the payment procedure (Hamilton et al. 2014). The speed of the payment process is also higher for small as well as large corporate business of the organisation. This application is available in 27 countries including Asia, Europe, and North America (Hsbc.com, 2020).
- Execution of Data-driven services Compared to product-driven service
The organization has focused on the data-driven service of the customers rather than product-driven service. The data-driven service provides more security and safety to the data of the customers and enhances the storage capacity of the system.
Launching of digital personal loan
The organization HSBC bank has executed the policy of digital personal loan for the users to enhance the number of depositors in the organization. This enhances the capabilities and scale of the banking service for sustaining in the global business environment (Heredia et al. 2017). This application enhances the loan making decision by cross-checking the customer’s information rapidly. The application was mainly for the customers who opt for a loan amount higher than $17,000 (Hsbc.com, 2020).
Enhancing the invoicing tool for corporate clients
The organization HSBC bank has enhanced its invoicing tool with making partnership with the Australian organization Identities. This provides more flexibility in the communication channel for making healthy relationships with corporate clients.
2.4 Theories on global decision-making strategies and concept
Bayesian decision-making theory
The Bayesian decision-making theory is based on the assumption and pattern classification of the population. This theory is mainly used to predict customer behaviour towards the organization. The theory is based on the particular assumption of probability and cost to mitigate the assumption.
This theory is mainly used in business innovation to predict customer retention statistics. With the help of the clustering technique, the theory helps to classify the customers based on similar features. The organization can predict the characteristics of the customers through this decision-making theory and apply proper marketing strategy to retain the customers and enhance the overall organization growth (Kasemsap, 2016).
The theory can predict which customer is going to lose business with the organization and who stays long term. Based on the probability, the decision has been made to retain the customers in the global business environment. The decision-making theory helps to increase organizational performance and annual profit (Kathiravan and Rajasekar, 2018). HSBC bank has used the theory to predict the purchasing behaviour of the customers to a great extent.
Retrospective decision Model
This model is based on the choices of the decision as per the issues and challenges faced by the organization. This model will be helpful to jot down the issues faced by the organization and help to make appropriate decisions based on the rationale.
The model is used to mitigate the behavioural issues of the organization in a better perspective and due to this reason in HSBC bank; this model is followed to mitigate the customers reviews and feedback. Based on the observation of the customers, higher authorities of the organization have taken decisions that are helpful for customers to avail premium services (Kudryavtseva et al. 2016). This model is hence used by many organisations to develop customer relationship management and help to enhance the business performance of organization.
The main advantage of this decision-making model is to use innovative technology for resolving the issues with strategic decision-making policies (Menna et al. 2019). Another benefit is to higher the efficiency of the decision by choosing the correct option from the decision-making pool. This model will be helpful in the global innovative environment to enhance the productivity of an organization.
3. Conclusion
3.1 Conclusion
It can be concluded from the study that the main focus is on global innovation management and the different contemporary issues of business. The HSBC bank has been selected in this study to discuss the innovation management in a broader aspect. The study also highlights the concept of innovation management and the individual factors that affect innovation.
The study also forecasts the key activities of the behaviour of organization and the innovative tools to sustain in the global business environment. The study reveals the strategic decision making theories and concepts to mitigate the issues of business. This will help to enhance the performance of the organization. The appropriate recommendations have been provided here to mitigate the contemporary issues and enhance the performance of the organization for better productivity. The study also points out the needs of innovation management in the organization for higher performance outcomes.
3.2 Recommendations
The following strategy will be helpful to higher the performance of innovation management in HSBC bank.
- Establish a clear sense of direction
There is a need to articulate the message for innovation to the individual hierarchy of the organization for better productivity. As mentioned by Paterson et al. (2018), this helps to prioritise the business plan and policies of the organization and empower the human resource practices.
The clear direction helps to overcome ambiguity in the thought of the employee, hence, influence them in a positive direction. This will help to create a healthy relationship between the individual hierarchies of the organization in a great manner.
- Open communication
Effective communication between the individual team members will help to short out problems and implement the innovative tools of business. The use of innovative business practices helps the organization to achieve the business goal (Prim et al. 2017). Effective communication will be helpful for clearing doubts and conflict between the individuals in the organization.
- Reduce bureaucracy
In large organisations, the level of complication between the processes is higher compared to small organizations. Hence, it is difficult to implement innovation management in the global organization due to high bureaucracy.
As opined by Tidd and Bessant, (2018), there is a need to mitigate the problem by making the processes simple and flexible for the users and the employees. This will also help to mitigate the technical problem of the organization as well as internal problems.
- Instil a sense of ownership
The organization needs to understand that each employee is important for growth. If the employees will not be aware of the fact that their efforts are counted then they will not provide full effort for the growth of the organization (Venkatesh and Singhal, 2018). The feelings of ownership influence the individual employees for giving efforts to the organization for long term success.
- Tolerance for risk and failure
Risk and failure are part of business growth, hence, it is very important to tolerate a certain amount of risk for invoking innovation management. There is a need to build trust among the employees and management of the organization to bear with the risk factor (Verbeke and Asmussen, 2016). This will influence organisational productivity and innovation and help the organization towards achieving success in long run.
- Eliminate the unnecessary process
The company needs to eliminate unnecessary projects or process for implementing innovation management and mitigating the contemporary issues. The unnecessary transaction will violate the growth of the organization and reduce the overall performance (Westland, 2018). Hence, it is needed to develop the process and projects which are essential for organizational growth.
- Make sure recognition & reward system
The organization HSBC needs to praise the employee’s performance which boosts up their skill and competencies for better productivity. The employees need to be rewarded for their innovative ideas and the execution of thoughts. This will help to cheer up the efficiency of the employees for better future outcomes.
Reference list
Journals
Albors-Garrigos, J., Igartua, J.I. and Peiro, A., 2018. Innovation management techniques and tools: Its impact on firm innovation performance. International Journal of Innovation Management, 22(06), p.1850051.
Bowen, G. and Bowen, D., 2016. Social media: strategic decision making tool. In Competitive social media marketing strategies (pp. 94-111). IGI Global.
Cano-Kollmann, M., Hannigan, T.J. and Mudambi, R., 2018. Global innovation networks–organizations and people. Journal of International Management, 24(2), pp.87-92.
Chen, N., Rey, D. and Gardner, L., 2017. Multiscale Network Model for Evaluating Global Outbreak Control Strategies. Transportation Research Record, 2626(1), pp.42-50.
Coccia, M., 2017. Sources of technological innovation: Radical and incremental innovation problem-driven to support competitive advantage of firms. Technology Analysis & Strategic Management, 29(9), pp.1048-1061.
DoÐan, E., 2016. The Effect of Innovation on Competitiveness. Ekonometri ve İstatistik Dergisi, (24), pp.60-81.
Eke, G.J., 2018. Contemporary Issues in Employee Motivation and Performance in Organizations. Social Sciences, 5(1).
García‐Olalla, M. and Vázquez-Ordás, C.J., 2020. Introduction to the Special Issue:‘Contemporary Issues in Banking’. Global Policy, 11, pp.7-8.
Haleem, A., Kumar, S. and Luthra, S., 2018. Flexible system approach for understanding requisites of product innovation management. Global Journal of Flexible Systems Management, 19(1), pp.19-37.
Hamilton, L. Mitchell, L. & Mangan, A. (2014), Contemporary Issues in Management, Edward Elgar.
Heredia, A., Colomo-Palacios, R. and Soto-Acosta, P., 2017. Tool-supported continuous business process innovation: a case study in globally distributed software teams. European Journal of International Management, 11(4), pp.388-406.
Kasemsap, K., 2016. The roles of knowledge management and organizational innovation in global business. In Civil and Environmental Engineering: Concepts, Methodologies, Tools, and Applications (pp. 1156-1180). IGI Global.
Kathiravan, C. and Rajasekar, A., 2018. A Global Perspective of Conflict Management & Conflict Management Styles Strategies to Manage Workplace Conflict in the Contemporary Issues in Business Scenario. International Journal of Advanced Scientific Research & Development (IJASRD), 5(3), pp.1-7.
Kudryavtseva, S.S., Shinkevich, A.I., Ostanina, S.S., Vodolazhskaya, E.L., Chikisheva, N.M.,Lushchik, I.V., Shirokova, L.V. and Khairullina, E.R., 2016. The methods of national innovation systems assessing. International Review of Management and Marketing, 6(2S).
Menna, A., Walsh, P.R. and Ekhtari, H., 2019. Identifying enablers of innovation in developed economies: A National Innovation Systems approach. Journal of Innovation Management, 7(1), pp.108-128.
Paterson, A., Yonekura, A., Jackson, W. and Jubb, D. eds., 2018. Contemporary Issues in Social Accounting. Goodfellow Publishers Limited.
Prim, A.L., FILHO, L.S., Zamur, G.A.C. and Di Serio, L.C., 2017. The relationship between national culture dimensions and degree of innovation. International Journal of Innovation Management, 21(01), p.1730001.
Tidd, J. and Bessant, J., 2018. Innovation management challenges: From fads to fundamentals. International Journal of Innovation Management, 22(05), p.1840007.
Venkatesh, R. and Singhal, T.K., 2018. Clarifying Determinants of Business Innovation Capabilities for Technology Driven Entrepreneurial Firms. International Journal of Applied Engineering Research, 13(13), pp.11305-11315.
Verbeke, A. and Asmussen, C.G., 2016. Global, local, or regional? The locus of MNE strategies. Journal of Management Studies, 53(6), pp.1051-1075.
Westland, J. R. 2018, Global Innovation Management (2nd Edition), Publisher: Red Globe Press
Website
Hsbc.com, 2020, HSBC, Available at: https://www.hsbc.co.uk/ [Accessed on 1 May, 2020]
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